The creditworthiness of an individual is represented numerically by their CIBIL score, also known as their Credit Information Bureau (India) Limited score.
A higher score indicates better creditworthiness, and ranges from 300 to 900. Before approving a loan or credit card, financial institutions assess the creditworthiness of an individual using their CIBIL score.
Consider the following steps to increase your CIBIL score in India.
1. Pay your loans on time: To have a good payment history, make sure to pay all your credit card bills, loan EMIs and other financial obligations in full.
2. Aim to use only 30% or less of your available credit limit across all loans and credit cards to maintain a balanced credit utilization ratio. Your score may be affected if your credit utilization is high.
3. Avoid submitting multiple loan or credit card applications at once. This will hurt your credit score as it will show that you are credit hungry.
4. Maintain a healthy credit mix: Your score can improve if you have equal amounts of secured and unsecured loans, such as personal loans and credit cards.
5. Check your credit report frequently to find and correct any mistakes or discrepancies. Credit bureaus like CIBIL provide one free credit report per year.
6. Keep old credit accounts active: Even if you don't use them frequently, having a long credit history can improve your score.
7. Avoid making too many credit inquiries. It generates an inquiry every time you apply for new credit, and multiple inquiries within a short period of time can have a negative impact on your score.
Remember, building a good credit score takes time and requires consistent responsible credit behavior.
What is cibil score in india how to improve cibil score ?
Reviewed by Admin team
on
July 06, 2023
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Reviewed by Admin team
on
July 06, 2023
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